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The message they posted a day before this settlement - http://grooveshark.com/

I'm confused, didn't Grooveshark just provided aggregation and a streaming player with playlist management? The music was not hosted by Grooveshark right?

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I thought you could upload to Grooveshark.

You could, I've uploaded stuff from some bands home burned demo discs before. I probably don't have access to any of that stuff anywhere now.

I remember reading that after rights-owners requested certain songs taken down, Grooveshark employees would re-upload them to the service. This made them lose safe-harbor provisions for hosting third-party content.

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